This module allows you to analyze existing cross correlation between itBit Bitcoin USD and LocalBitcoins Bitcoin USD. You can compare the effects of market volatilities on itBit Bitcoin and LocalBitcoins Bitcoin and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in itBit Bitcoin with a short position of LocalBitcoins Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of itBit Bitcoin and LocalBitcoins Bitcoin.

itBit

LocalBitcoins

Bitcoin on LocalBitcoins in USD

11,476

1,052

10.09%

Market Cap: 12.7 B

Performance (%)

Timeline

Pair Volatility

Assuming 30 trading days horizon, itBit Bitcoin USD is expected to under-perform the LocalBitcoins Bitcoin. But the crypto apears to be less risky and, when comparing its historical volatility, itBit Bitcoin USD is 3.9 times less risky than LocalBitcoins Bitcoin. The crypto trades about -0.14 of its potential returns per unit of risk. The LocalBitcoins Bitcoin USD is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,617,202 in LocalBitcoins Bitcoin USD on February 17, 2018 and sell it today you would lose (607,370) from holding LocalBitcoins Bitcoin USD or give up 37.56% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between itBit Bitcoin and LocalBitcoins Bitcoin

0.6

Parameters

Diversification

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding itBit Bitcoin USD and LocalBitcoins Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on LocalBitcoins Bitcoin USD and itBit Bitcoin is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on itBit Bitcoin USD are associated (or correlated) with LocalBitcoins Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LocalBitcoins Bitcoin USD has no effect on the direction of itBit Bitcoin i.e. itBit Bitcoin and LocalBitcoins Bitcoin go up and down completely randomly.